Diplomacy - lie about being touchy-feely (7)
I believe the answer is:
tactile
'touchy-feely' is the definition.
(I've seen this before)
'diplomacy lie about' is the wordplay.
'diplomacy' becomes 'tact' (tact can mean diplomacy or sensitivity).
'about' indicates anagramming the letters.
'lie' is an anagram of 'ile'.
'tact'+'ile'='TACTILE'
'being' acts as a link.
(Other definitions for tactile that I've seen before include "Lattice (anag.)" , "Tangible - of touch" , "Pleasant to touch" , "Touchy-feely" , "Hands-on" .)